Public Service Commission warns transfers would drain regulator funds, raise legal risks for 911 financing
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Summary
The Appropriations Committee heard the Nebraska Public Service Commission say proposed transfers from regulatory and 911 cash funds would leave the agency unable to carry out statutory duties and could run afoul of federal rules governing 911 fees, while advocates urged continuing targeted funding for 211 and broadband programs.
Greg Wahlkin, executive director of the Nebraska Public Service Commission, told the Legislature’s Appropriations Committee the commission has worked to reduce general‑fund reliance but opposes proposed transfers from its natural gas regulation fund and the 911 service system fund. Wahlkin said the natural gas regulation fund is financed by customers of regulated utilities and that a proposed $1,000,000 transfer would leave insufficient balance to pay for lengthy litigated rate cases and an ongoing multistate merger review.
Wahlkin also warned a proposed roughly $3.5 million transfer from the 911 fund to cover 988 lifeline costs would likely be seen by the Federal Communications Commission as an impermissible diversion of 911 fees. He said the FCC has advised that such a transfer could identify Nebraska as a state that diverted 911 funds and jeopardize future 911‑related federal support and participation in FCC advisory committees.
Committee members pressed commission staff on fund balances and timing; Wahlkin said the 911 fund balance is roughly $16 million at present but projected near‑term expenditures — including rebidding and transitioning to the next‑generation 911 system — will be significant. Public advocate Chris Dibbern and other witnesses highlighted that the natural gas regulatory fund is needed now for litigation and expert review in merger and rate matters. Dibbern said the fund pays for PSC staff, the public advocate and hired experts and noted current merger dockets will draw down the balance.
Separately, Shauna Forsberg of United Way of the Midlands asked the committee to fund 211 information services within the PSC budget using $700,000 from the Nebraska Health Cash Fund, noting a recent month‑to‑month call‑volume spike and the 2‑1‑1 system’s role in disaster response. Committee members asked where 988 and 211 are administered; witnesses clarified 988 contracts are under DHHS while PSC administers 211 under a public‑private partnership.
The hearing left committee members weighing legal risk to federal 911 eligibility against budget pressures; no formal vote was recorded during testimony. The committee heard multiple options for balancing obligations and was urged to protect specialized cash funds that support regulatory reviews and emergency communications.
